Ammunition manufacturing: Várpalota Ammunition Factory continues to grow.

Quiet job in the greenery, only the end product is a bit loud in application: The ammunition factory in Várpalota, which is currently being constructed by the Hungarian N7 Holding for the joint venture Rheinmetall Hungary Munitions Zrt., continues to grow as planned. Additional capacities are being created there to manufacture not only medium-caliber ammunition but also large-caliber ammunition. The construction of this second phase started in January 2024.

The concepts for the multi-stage expansion of the plant had already been developed before February 2022 – that is, even before the start of the Russian war against Ukraine. The project is a strategic investment from Hungary in cooperation with Rheinmetall to counteract the foreseeable shortage of ammunition against the background of the expected demand in Europe and NATO. At the same time, it promotes Europe's independence in this area from imports from overseas.

It was only in December 2022 that the cornerstone was laid for the initial parts of the new Rheinmetall plant in Várpalota, where the joint venture Rheinmetall Hungary Munitions Zrt. will manufacture ammunition for various systems in the future. In the first expansion phase, the plant is capable of producing 30mm medium-caliber ammunition, which will also be used by the infantry fighting vehicles Lynx manufactured by Rheinmetall in Zalaegerszeg, Hungary. Operations are expected to start in 2024.

The expansion "Várpalota 2.0" now beginning will increase the size of the plant from approximately 20 to around 120 hectares. The number of employees will increase to up to 200. In addition, the product range will be expanded to include additional types of ammunition, especially 155mm artillery ammunition for the Panzerhaubitze 2000 and 120mm ammunition for the Leopard 2 main battle tanks and, in the future, the Panther KF51 EVO. Production is expected to start in early 2026. Rheinmetall also plans development and acceptance activities in Várpalota.

Part of this strategic capacity expansion for ammunition production in Hungary also includes an additional plant for the production of explosives (RDX), which is being built simultaneously on the same site and in a joint venture between Rheinmetall and N7. This will make a significant contribution to the supply security of this essential raw material for ammunition production in the European region.

Some of the production in Várpalota is intended for the needs of the Hungarian armed forces, and in addition, the international market will also be supplied. Besides the newly built plant of Rheinmetall Hungary Munitions Zrt., Rheinmetall already manufactures ammunition in Germany, Spain, Switzerland, Austria, Italy, South Africa, Australia, and the United States.

RHEINMETALL on the Internet